Oliver's Insights

Shane Oliver discusses the recent fall in China’s share market and its impact on Australia.

The key points are as follows:
·         Just as the rise in Chinese shares had little economic impact it’s hard to see the pullback having a significant                 economic impact either.
·         Chinese economic growth is likely to remain “around 7%” with monetary and fiscal easing helping.
·         The volatility in Chinese shares represents a necessary correction. Large cap shares are not expensive.
·         The main dampener on commodity prices – and Australia’s terms of trade – is not China, but supply.

To see the full article click here: China sharemarket – OI #24 2015